Vietnam National Financial Switching JSC.

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1. Banknetvn Introduction

• Overview

• Members and Partnerships

• Main Products and Services

2. Vietnam Retail Payment Market

• Payment Instruments

• Payment Network

3. Road Map

Content

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Banknetvn Introduction

VISION

MISSION

To be the national financial

switching organization and the

leading payment company in

Vietnam

• Focus on the success and interest of customers

• Sustainable development with disciplinary expertise, creativity and responsibility

Vietnam National Financial

Switching Joint Stock

Company was established on

July 19th, 2004 with 08

shareholders including 07 of

Vietnam’s leading banks and

Vietnam Data

Communication Company.

On April 1st, 2015, Banknetvn

merged with Smartlink to

become the national

switching facility in Vietnam

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Members and Partnerships

MEMBER BANKS 49 member banks and inter-

connected with other switching

networks

PARTNERSHIPS Working partnerships with

numerous international

organizations

MERCHANTS & SERVICE PROVIDERS Serving hundreds of merchants and

service providers in several industries

including airlines, telecommunication,

digital wallet, etc.

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Main Products and Services

Banknetvn acts as the hub connecting and facilitating the operation of all parties participating in the payment market 5

Intl. Switching organizations

Intl. Card Schemes

Payment facilitator

Banks

State Bank of Vietnam

E-payment solution

POS

Mobile

Internet

Banking

ATM

Chip card services

Payment processors

Main Products and Services Switching Connecting 49 local banks in Vietnam Connecting with intl. switching company: DFS, UPI, KFTC, ITMX, MEPS, UC.

Fund transfer Real-time domestic and cross-border fund transfer between domestic cards/accounts service provided to more than 30 banks in Vietnam

TopUp and Billing TopUp and Bill payment service connecting 23+ Banks with goods and service providers

Mobile Banking Mobile banking solution allowing customers to carry out e-banking transactions on smartphone application

SMS Banking SMS banking solution allowing customers to receive Banks’ notification through SMS

E-commerce E-com service allowing 200+ merchants to accept online payments made with international and domestic cards with a single connection to Banknetvn

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Market Status: Payment Instruments

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INTERNATIONAL CARD

• 8 million international cards / 80

million current cards

• Various product lines with

diversified functions for different

customers

• Diversified technologies: magnetic

card, chip, contactless

• Focus on building brand

recognition

• Not largely popular with the

customers

DOMESTIC CARD OTHERS

• 72 million cards

• Well-known and suitable to most

Vietnamese people, largely used

• Limited product lines and

functions

• Only mag stripe card

• No brand recognition with

individual customers yet

• E-wallet, e-money, payment

services via accounts on banks’

electronic channels

• Developed spontaneously,

asynchronously

• Lack of common standards for

service quality, information

security, risk management

• Lack of interoperability

between services

Source: Vietnam Card Association report Jun 2014

DV TT khác POS ATM

Market Status: Payment Network

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• Number of ATM: 15.694

• Banks maintain, operate and

manage separately

• The growth rate of number of

machines decreases in recent

years

Locations of the ATMs focus on

large cities

• Number of POS: 151.876

• POS number grows averagely

30%/year

• The proportion of POS

transactions in the total number

of Switching transactions is still

low

Banks only focus on merchants with

high revenue.

• Number: 100+

• Main industries:

Telecommunication, Airlines,

Television, e-commerce…

• Billers connect directly to banks

or through a payment

intermediary

No common infrastructure yet,

which causes waste in bank

resources. Lack of general standards

for services.

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Strategic Directions

Banknetvn’s goal is to develop and

continuously improve the

infrastructure for Vietnam’s non-cash

payment market

• Develop the national switching

system in the direction of

diversifying products and services

• Establish the standards for card

service and non-cash payment

services

• Build a national card scheme

• Build the national Automated

Clearing House (ACH) for electronic

retail transactions

• Develop and manage ATM network

• Develop and manage POS network

With the national switching system,

member banks only need a single gateway

connected to Banknetvn to use all basic

and value-added card products/services of

the Company.

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1. Complete the national switching system

• International cards -

Domestic cards

• Mag stripe cards – Chip cards

(contact and contactless)

• Debit/Credit/Prepaid cards

• ATM

• POS

• Internet/Mobile

• Fund transfer via

card/account

• Integrate card and e-

wallet

• Other payment services

Support all cards and card standards

Support various transaction channels

Support value-added payment services

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2. Standards for Card Services and Non-cash Payment Services Banknetvn will develop and

promulgate the standards for technical/operational specifications and product functions for various card products, which will satisfy the expectations of card holders and member banks

Card Issuing Standards

Card Acquiring Standards

Build and publish the standards for all local

debit cards: mag-stripe cards/chip cards,

debit/credit/prepaid cards…

• Card transaction standards at ATM/POS

• Card transaction standards on the

Internet and other card-not-present

environments

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3. Implement National Card Scheme

• A brand strategy in tune

with the development of

card products and multi-

channel, multi-instrument

payments

• Brand activation and

recognition

implementation on all

transactional channels

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4. Build the National Automated Clearing House

Service provided: • Clearing transactions for member

banks, intermediaries, and service providers.

• Process fund transfer and payment transactions between member banks, member companies

Create a unified infrastructure for collaborating and sharing a retail payment services between payment intermediaries as well as banks

Customer: • Banks • Payment

Intermediaries/Processors • Companies with incoming

payments from customers via banks

High standardization: • Flexible and open platform to

easily support new products and services

• Support both real-time, 24/7 and batch processing

• No need to maintain several connections to merchants

• ISO 20022

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5. Develop and manage the POS network

Banknetvn will implement network management and

development service for member banks’ ATM/POS

network.

Service:

• Invest, develop and maintain

merchant network.

• Develop payment and value-added

services on POS

• Develop other value-added services.

Service:

• ATM management service

• Locate and install ATM at suitable

locations

• Invest and maintain the ATM

network

• Develop payment and value-added

services on ATM

• Other relevant services

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6. Develop and manage the ATM network

Banknetvn will implement network management and

development service for member banks’ ATM/POS

network.

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Công ty chuyển mạch tài chính quốc gia VN

BanknetVN │Platform for Retail Payment Services in Vietnam

Vietnam National Financial Switching JSC.

Thank you

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